Commentary

YouTube Tests Ad-Skipping Option

by Wayne Friedman , Staff Writer, November 12, 2009

The Internet is too "open" for its own good sometimes.

Now some video content providers want to give users the option of skipping TV-like commercial messages. Actually, that's one big video content provider: YouTube.

It is testing this user choice, with the aim, at least initially, of giving marketers some ideas of what messaging is working -- and what isn't. YouTube is also playing around with this ideas as research for future user-fee, advertising-free video models.

The problem with all of this: Technology can be habit-forming. Give users the ability to skip ads on a widespread basis, and they'll get used to it.

Five years from now, they might fume over the either-or choice -- to pay for the video or see the TV commercial. Withdrawal won't be pretty.

All this goes by the wayside, however, if, as some believe, we are moving to total paid content world, especially for the premium TV content of network-quality dramas, comedies, and even reality shows.

Years ago there was the perception the Internet lets its users get music for free. While tremendous changes have forced consumer to shift their thinking, the habit has still been tough to break.

Video providers might not want to get into such a long-term tussle with consumers -- especially when there's more dependence on the Internet model to attract viewers to video content.

Good news for YouTube: Two years ago, users were abandoning video with pre-roll video ads 70% of the time; now that has dropped dramatically. For example, a 15-second pre-roll ad supporting a piece of video content is now abandoned just 15% of the time.

All that means users are getting more accustomed to expecting commercials -- just as they do on traditional TV. Maybe viewers get the drift if video is free - with a short video ad -- it is not such as bad deal.

Perhaps users are anticipating the day they'll have to pay for content. Either way it seems marketers and video producers would be in the driver's seat.

Ad skipping options for online video content will just make us feel warm and in control. Why would content providers want to do that?

2 comments about "YouTube Tests Ad-Skipping Option".

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Mike Einstein from the Brothers Einstein, November 13, 2009 at 9:19 a.m.
This is the tallest midget debate taken to its illogical extreme - determining which ads are even less tolerable than others.
I wish I had a bridge in NY to sell to these guys.
Reply

Howie Goldfarb from Blue Star Strategic Marketing, November 16, 2009 at 2:06 p.m.

People will pay for superior content. One of the failures of TV/Cable ad supported content is how pitiful that content has become. So charging isn't an issue. It is having content worth paying for. The Movies prove that for superior content consumers will pay about $5/hr for first run content. The Financial Times has been a very successful digital subscription service, so successful the Wall Street Journal followed suit. But I agree with the author, once conditioned a certain way it is hard to change behaviors. But people will notice the bigger the revenue stream the better the content created and 100% Ad Support actually gives pretty poor revenue streams.